Autthorizing the acquistion, construction, and installation of certain improvements and extensions to sewage works, the issuance and sale of additional revenue bonds

Home Browse Search

in this Ordinance and the Financial Assistance Agreement, and for the payment of the sums required to be paid into the Sewage Works Sinking Fund by the Act and this Ordinance. The City covenants and agrees that it will establish rates and charges in a manner which reflects a customer's fair share of the Sewage Works' capital costs and a customer's proportionate share of Operation and Maintenance. The fair share of the Sewage Works' capital costs shall be determined by the City. The proportionate shaze of Operation and Maintenance shall be based on the actual (or estimated) wastewater flow and loading contributed by a customer in relation to the total wastewater flow and loading contributed by all customers. Such rates or charges shall, if necessary, be changed and readjusted from time to time so that the revenues therefrom shall always be sufficient to meet the expenses of Operation and Maintenance of the Sewage Works and the requirements of the Sewage Works Sinking Fund. The rates or charges so established shall apply to any and all use of such Sewage Works by and service rendered to the City and all departments thereof and shall be paid by the City as the charges accrue. Section 15. Defeasance. If, when the 1998 Bonds issued hereunder shall have become due and payable in accordance with their terms or shall have been duly called for redemption or irrevocable instructions to call the 1998 Bonds for redemption shall have been given, and the whole amount of the principal and the interest and the premium, if any, so due and payable upon all of the 1998 Bonds then outstanding shall be paid; or (i) sufficient moneys, or (ii) direct obligations of, or obligations the principal of and interest on which aze unconditionally guaranteed by, the United States of America, the principal of and the interest on which when due will provide sufficient moneys, or (iii) time certificates of deposit fully secured as to both principal and interest by obligations of the kind described in (ii) above of a bank or banks the principal of and interest on which when due will provide sufficient moneys, shall be held in trust for such purpose, and provision shall also be made for paying all fees and expenses for the redemption, then and in that case the 1998 Bonds issued hereunder shall no longer be deemed outstanding or entitled to the pledge of the net revenues of the City's Sewage Works. Section 16. Additional Bonds. The City also reserves the right to authorize and issue additional bonds, payable out of the net revenues of its Sewage Works, ranking on a parity with the bonds authorized by this Ordinance, for the purpose of financing the cost of future additions, extensions and improvements to the Sewage Works, subject to the following conditions: -21- ::ODMA\PCDOCS\SBDOCS 1\1494T3